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The National Company Law Tribunal has given Zee two days to submit its final response to Invesco's petition on holding an extraordinary general meeting to vote on ousting Punit Goenka as the CEO. NCLT will hear the case next on October 7.
On Tuesday, the legal counsel for Zee sought additional time to prepare its final arguments. NCLT said the matter must be heard urgently because it wanted to take a decision on Invesco's plea well within the 45-days time period for the company to hold the EGM. Invesco had first sent its request to hold the EGM on September 11.
Removing MD
The requisition for the EGM seeks to remove promoter and Managing Director Punit Goenka from the board of directors on the grounds of poor corporate governance. On September 29, Invesco moved NCLT to compel the Zee board to hold the EGM, and subsequently, on October 1 the Zee board rejected the EGM on the grounds of it being invalid and illegal. Zee also filed a counter-suit against Invesco in the Bombay High Court on the same date.
Zee argued that NCLT cannot decide upon the issues that Zee has raised.
NCLT has, therefore, said that the final hearing will address two questions: whether NCLT can decide on this matter and thus compel Zee to hold the EGM within 45 days. Second, is the requisition made by Invesco a valid one or not.
Janak Dwarkasas, senior counsel for Invesco, accused Zee of forum shopping, filing the matter in the Bombay High Court when it was already being heard of by the NCLT.
A spokesperson for Zee said, “The next date of hearing before the National Company Law Tribunal is Thursday, the 7 October 2021. As per the decision taken by the Board of the Company, which was communicated on 1 October 2021, and as per their guidance, the company has already moved the Bombay High Court to declare that the requisition notice sent by Invesco Developing Markets Fund and OFI Global China Fund LLC is invalid. The company will continue to take all the necessary steps that are in the best interest of all its shareholders and as per the applicable law.”
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